Published 10:00 pm, Tuesday, July 25, 2006

WatchGuard shareholders will receive $4.25 for each share they own, the companies said in a statement. The offer represents a premium of 14 percent over Monday's closing price of $3.73.

Seattle-based WatchGuard "has made significant investments in new product development efforts that we believe will fuel future growth," Ben Ball, managing director of Francisco, said in the statement. Francisco, based in Menlo Park, Calif., concentrates its investments in technology companies.